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ELRCPartially AllowedCause No 829 of 2016· [2022] KEELRC 1023 (KLR)

James Nganga Mbugua v Kiambu Water And Sewerage Company Limited (Cause 829 of 2016) (Employment and Labour) [2022] KEELRC 1023 (KLR)

Employment and Labour Relations Court
21 January 2022
2,680 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court ruled a suspended water company boss was never actually fired, so he must resume duty, but gets no damages because he kept receiving full salary.

What this practically means

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Executive summary

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The claimant, formerly Managing Director of the respondent, sued for unfair and unlawful termination, unfair suspension and advertisement of his position, claiming compensatory damages, unpaid airtime and entertainment allowances and general damages. The respondent denied terminating him, stating he was suspended to pave way for investigations and later referred to the Kiambu County Government, which he claims seconded him. The court framed four issues: whether the claimant was terminated; whether such termination was unfair; whether he was seconded to Kiambu County Government; and what reliefs avail. Applying section 47(5) of the Employment Act and following Pius Machafu Isindu v Lavington Security Guards Limited, the court held that termination means complete severance of the employment relationship, and as the claimant produced no termination letter and admitted drawing salary throughout, he failed to prove termination; the unfairness issue fell away. On secondment, the court held secondment cannot be implied but must be express; the referral letter merely directed the claimant to await instructions from the County Government which never came, and the respondent abandoned its disciplinary process midstream despite court orders permitting its conclusion. The claimant therefore remained the respondent's employee. Compensatory damages and allowances were refused, the allowances being facilitative and dependent on actual performance, per Richard Erskine Leakey. The court lifted the suspension, directed resumption of duty in his previous capacity, found the prolonged suspension unfair and unlawful but awarded no damages as he was on full salary, and ordered each party to bear its own costs.

Key legal issues

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01

Whether the claimant was terminated from employment

Holding

No termination was proved; employment relationship subsisted

Reasoning

Termination requires complete severance of the employment relationship. Under section 47(5) of the Employment Act the employee bears the burden of proving termination and unfairness. The claimant produced no termination letter or correspondence, and admitted he continued drawing salary for some 80 months. Constructive dismissal was never pleaded though available. The claim of termination therefore failed.

p. 3
02

Whether the claimant was seconded to Kiambu County Government

Holding

The purported secondment was ineffective; the claimant remained the respondent's employee

Reasoning

Secondment must be express and cannot be implied. The letter of 11th February 2016 merely referred the claimant's case to the CEC Member for further action and advised him to await instructions which never came, leaving him in limbo. The respondent also abandoned the disciplinary process midstream despite court orders allowing it to conclude the process within 30 days. The claimant remained the respondent's employee.

p. 3
03

Entitlement to airtime and entertainment allowances during suspension

Holding

Claimed allowances are facilitative and dependent on actual performance of duties; not payable during suspension

Reasoning

Relying on the Court of Appeal in Richard Erskine Leakey, allowances dependent on actual service and performance of contract are not payable where the employee performs no duties. As the claimant was on suspension throughout and performed no duties, he was not entitled to the airtime and entertainment allowances claimed.

p. 3

Legal principles established

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  • In an employment relationship, secondment cannot be implied; it must be express
  • Termination of employment means complete severance of the employer-employee relationship, which must be proved by the employee under section 47(5) of the Employment Act
  • An employer must conclude a disciplinary process it has commenced and cannot abandon it midstream

Court orders

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  1. 1.Lifted the suspension and directed that the claimant resumes duty in his previous capacity
  2. 2.Declared that the claimant's employment was not terminated and his purported secondment was ineffective
  3. 3.Found the prolonged suspension unfair and unlawful but awarded no damages as the claimant was on full salary
  4. 4.Dismissed the claims for compensatory damages and airtime/entertainment allowances
  5. 5.Each party to bear its own costs

Authorities

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Legislation

  • Employment ActSection 47(5)
  • Employment ActSection 43(1) (as cited in Pius Machafu Isindu)
  • Civil Procedure RulesOrder 21 Rule 1
  • Civil Procedure ActSection 1B
  • Constitution of KenyaArticle 159(2)(d)
  • Constitution of KenyaArticle 48

Cases cited (6)

  • Parliamentary Service Commission vs Christine Wambua
    (2018) eKLR
  • Wilson Mudogo Mulima vs Ags Worldwide Movers (K) Limited
    eKLR
  • Margaret Ayuma vs Attorney General
    (2018) eKLR
  • Jacqueline M. Mutiso vs Kenya Revenue Authority
    (2021) eKLR
  • Pius Machafu Isindu v Lavington Security Guards Limited
    [2017] eKLR
  • Richard Erskine Leakey & 2 others vs Samson Kipkoech Chemai
    [2019] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment disputes (Employment Act; Employment and Labour Relations Court Act)

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "James Nganga Mbugua v Kiambu Water And Sewerage Company Limited (Cause 829 of 2016)  (Employment and Labour) [2022] KEELRC 1023 (KLR)", Case Analysis (2022). Cause No 829 of 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/1023/eng@2022-01-21

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.